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SM Energy to Exit Mid-Continent; Close Office
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SM Energy Company announced that it is beginning a process to sell its assets in the Arkoma Basin of Oklahoma and in the Arklatex area of East Texas and Northern Louisiana. These assets produced approximately 3.4 MMBOE, net during 2014 (98% gas).
East Texas Asset/Woodbine
Source : SM Energy March 2014 Presentation; PetroleumResearch.org
The sale process will be managed by RBC Richardson Barr & Co. Assuming acceptable bids are received, the closing of the sale should be in mid-2015. The Company also plans to close its Mid-Continent regional office in Tulsa, Oklahoma later this year and to relocate many of its personnel to its other offices.
Tony Best, SM Energy CEO, said, “We had a strong 2014 driven by outstanding well results across the company. This was particularly true in our core Eagle Ford and Bakken/Three Forks development areas where, as previously disclosed, we have economic drilling inventory equating to over 20 years of current company production and 10 years of gross locations at our current pace. As part of our effort to create differential shareholder value, we are launching a process to sell the remainder of our Mid-Continent and Arklatex assets and shift our resources to further focus on the development of these core assets.
Our balance sheet is strong, we have ample liquidity, and we are confident that after costs adjust to the current commodity pricing environment we will continue to generate strong, industry leading returns on capital employed.”